Why Is Car Insurance So Expensive in Florida?

Florida car insurance is expensive due to no-fault laws, many insured drivers, severe weather conditions, and economic factors that are increasing rates.
Written by Jessica Barrett
Edited by Kianna Walpole
Car insurance
ranks among the most expensive in the United States due to a combination of the state's unique no-fault insurance laws, a high number of uninsured drivers, severe weather conditions, and economic factors that are raising insurance rates across the board.

Why is Florida car insurance so expensive?

The average price of car insurance in Florida is $1,840 for a
state minimum coverage
policy and $2,676 for
full coverage
, both of which are significantly higher than the national average.
The high cost of auto insurance in Florida can be attributed to factors that are specific to the state, as well as factors that are driving up the cost of insurance coverage across the country.1
State-specific factors
From severe weather to a
no-fault system
to one of the highest uninsured driver rates in the country, Florida has a unique blend of factors that result in high insurance rates.
Industry-wide factors
Inflation continues to increase, cars and car parts are still expensive as demand outpaces supply, and insurers are experiencing losses like never before.
Other factors
Your personal profile, driving history, and vehicle details also play an important role in your rate calculation, so it literally pays to drive carefully and opt for a standard type of vehicle.

Unique factors in Florida

  • No-fault insurance laws: Florida's a no-fault state which requires drivers to carry
    personal injury protection (PIP)
    to cover medical expenses regardless of fault. Since the no-fault system covers more extensive medical treatments, it often leads to
    higher car insurance premiums
  • High rate of uninsured drivers: More than 20% of Florida drivers are uninsured motorists2, which increases risk for car insurance companies and, in turn, increases premiums for drivers who do carry insurance.
  • Severe weather conditions: Florida is prone to hurricanes and flooding, which puts insurance providers at risk for high payouts and raises rates across the board.
  • Heavy tourist traffic: The state of Florida is a popular tourist destination, bringing in more traffic and bolstering the risk of car accidents.
  • Expensive healthcare costs: High medical expenses in Florida lead to more costly insurance claims, which forces insurers to hike their rates.
  • Diverse demographics: Florida's unique demographic mix, including a significant number of elderly drivers and students, swings insurance premiums to the higher side.

Industry-wide and economic factors

  • Inflation: Inflation has driven up the cost of new and used cars and their parts, and companies continue to face supply-chain issues from the COVID-19 pandemic. High demand and low supply typically results in price increases, which insurers pass on to customers.
  • Record losses: Following substantial losses, some major insurers like State Farm and LiMu, have increased their rates by about 30 to 40%3. Other companies, like Farmers, have stopped writing policies in the state altogether.

Other factors

While these factors aren’t specific to Florida, they can cause your rates to increase no matter where you live:
  • Driving history: Tickets and other violations, such as DUIs, will lead to rate increases—safe drivers often pay lower costs
  • Credit score: Florida is allowed to consider credit score and a low score can negatively impact insurance premiums compared to a good credit score.
  • Vehicle: Luxury vehicles, sports cars, and electric vehicles typically have higher premiums
  • Personal profile: Drivers under 25 and over 75 tend to pay higher rates, as do males and people who are single.
  • Location: Living in an area with lots of traffic or higher theft rates will have you paying more
  • Coverage limits: Florida drivers may need higher liability limits or add-ons, like
    comprehensive coverage
    for added protection. Your amounts will change your rates.

Here’s what you can do about it

Finding affordable car insurance in the Sunshine State can feel like a monumental task, but there are some strategies you can use to lower your rate.

Switch insurance companies

If you haven’t compared insurance rates in a while, you might be overpaying.
can help you compare rates from dozens of insurance companies in a minute to make sure you’re getting the most affordable premium—and if you want to switch, Jerry can handle the paperwork and help cancel your old policy.

Explore discount options

Some of the most popular
car insurance discounts
(like bundling and good driver) will be automatically applied to your policy, but you might have to ask if you qualify for student discounts or want to take advantage of autopay or pay-in-full discounts. Remember that discounts may vary by state and insurance provider.
app screenshot

Adjust your coverage

If you don’t drive often, switching to pay-per-mile insurance instead a minimum liability option or full coverage policy might be a worthwhile (and money-saving) move.
And while dropping
full coverage insurance
isn’t usually a smart move, you can increase your deductibles to lower your premium.


Why is car insurance going up so much in Florida?

Car insurance rates are rising in Florida due to numerous factors, including the state's high number of uninsured drivers, frequent severe weather events like hurricanes and floods, a high rate of insurance fraud, and a high cost of health care.

Is Florida the most expensive state for car insurance?

Florida is often ranked as one of the most expensive states for car insurance, though rates vary depending on the individual and the insurance company.

How can I lower my car insurance in Florida?

To lower your Florida car insurance rates, you can shop around for better rates, bundle policies, increase deductibles, seek out discounts (such as for safe driving or anti-theft devices), and maintain a good driving record.

What is the average car insurance cost in Florida?

According to our data, the average cost of a full coverage car insurance policy in Florida is $2,676, which is about  $400 more than the national average.

What is the average cost of car insurance in Florida for a college student?

College students typically pay more for coverage due to riskier driving behaviors and little experience behind the wheel, though rates vary depending on the individual and insurance company.

How is car insurance cheaper in Florida?

Car insurance can be cheaper in Florida if you qualify for discounts, choose a higher deductible, maintain a clean driving record, or if you drive a car that's cheaper to insure. Minimum coverage is cheaper than full coverage.

How does Florida’s weather and climate impact auto insurance rates?

Florida’s weather—especially its susceptibility to hurricanes, floods, and severe storms—increases the risk of damage to vehicles and expensive claim payouts. Insurers raise their rates to cover this added risk.

Are there particular types of car insurance that are more expensive than others in Florida?

Comprehensive and collision coverage can be more expensive in Florida due to the high risk of natural disasters and auto accidents. PIP coverage is also mandatory in Florida and can be costly due to the high frequency of claims.

How can Floridians find the most competitive car insurance rates?

Drivers can find competitive rates by
comparing insurance quotes
from multiple insurers, checking for discounts, adjusting coverage levels, and considering usage-based insurance programs.

What are the consequences of driving without insurance in Florida?

Driving without insurance in Florida can result in severe penalties, including fines, license and registration suspension, and personal financial liability in the event of an accident. Repeat offenses can lead to increased penalties and even vehicle impoundment.

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